Madoff is serving a 150-year prison term for running the massive Ponzi scheme, estimated to have cost investors more than $17 billion of principal.

Wexler's lawsuit included fraud claims on behalf of Rye Select.

New York Supreme Court Justice Richard Lowe dismissed these claims, noting that Tremont already had settled with other investors in a federal class-action lawsuit based on the same accusations.

"Wexler's derivative claims were represented in the federal action by other limited partners of the Rye Select fund," Lowe wrote in the April 1 opinion.

Lowe also dismissed Wexler's direct claims against Tremont for fraud and negligent misrepresentation.

Wexler's lawsuit, Lowe wrote, "fails to explain how one or more alleged red flags made it so obvious that Madoff was running a Ponzi Scheme that defendants must have known about the scheme and wanted to further it."

Lowe also dismissed the lawsuit against Tremont's parent, Oppenheimer Acquisition Corp; Oppenheimer's owner, Massachusetts Mutual Life Insurance, and former Tremont executives Sandra Manzke and Robert Schulman.

Lowe said he would issue a separate opinion on motions to dismiss the lawsuit against other named defendants, including JPMorgan Chase, accounting firm KPMG, Bank of New York Mellon and Paul Konigsberg, an accountant who worked with Madoff's clients.

Seth Schwartz, a lawyer representing Tremont and Schulman, said that "Tremont is pleased with the decision."

Lawyers for Wexler, Manzke and Oppenheimer did not respond to requests for comment on Wednesday.

A spokesman for Massachusetts Mutual did not immediately return a request for comment.